Answer:
The correct answer is $165,000
Explanation:
Firstly the activity based costing is one of the most popular method of costing that is mainly used by manufacturing companies because of its accuracy , as it produces true cost data and properly classify's the cost incurred by the corporation in its process of manufacturing goods. Here cost would be identified and assigned to the overhead activities of the company and then those costs would be assigned to those goods.
Here for calculating the product cost for the tool bits we will see which cost are directly related to the tool bits.
So product cost for tool bits = cost of sanders for polishing tool bits
+
sales commission paid for tool bits
+
building space used for manufacturing the
tool bits
= $50,000 + $100,000 + 20% of $75,000
= $150,000 + 20/100 x $75,000
= $150,000 + $15,000
= $165,000
Answer:
(C) $745
Explanation:
The computation is given below:
For computing the bad debt expense, first we have to determine the ending account receivable balance which is shown below:
Ending account receivable balance = Beginning account receivable + credit sales - collections -
written off amount
= $20,000 + $70,000 - $74,700 - $400
= $15,300
So, the bad debt expense is
= Ending account receivable × given percentage
= $15,300 × 5%
= $745
Answer:
Amazon 65.35 Days Netflix 253.03 Days
Explanation:
Answer:
The correct answer is letter "B": towards the interest.
Explanation:
Mortgage payments are composed of the principal and the interest. <em>During the early life of the mortgage, most of the payments go towards the interest because it is calculated according to the outstanding balance of the mortgage</em>, which is higher at the beginning but as the loan approaches, the maturity date most of the payments will be directed to the principal and a minimum to interest.